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tv   Closing Bell  CNBC  February 10, 2010 3:00pm-4:00pm EST

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consecutive year of record revenue. i don't think many financial services firm that could say they had record revenue earnings not only in 2009 but 2008. we've had quite a. >> 2009, client offices have been opened up during the course of the year. how are you going to appeal to the retail investor? what's the game here for you guys? >> the game -- i don't like to call it a game, but we deal with all of our clients, whether it be retail or institutional. we take a long-term view. we believe in diversification and in serving your client's individual needs. it's not that hard 37 we don't try to trade day to day, simon. >> you're in a sector that's obviously under a huge. a tension from washington. >> yeah. >> you bank deposits almost swelled 300% from the ubs deal. all right we're here at the how is that -- does that affect alammo in san antonio, texas. your strategy? as we said, four of the fastest do you look at clearly the recovering cities in america, volcker rule and think how will according to "forbes" here in i move to take advantage of that or arguably this $30 billion texas and san antonio one of
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them. that may be coming down to the one of of the biggest events smaller banks, smaller medi going on right now is the san antonio rodeo. we spoke this morning on "squawk medium-size business lending. >> i think that it is interesting. box" this morning. the volcker rule i think that a lot of people are attacking it, saying you cannot implement the biggest event, we hear, this. i think what most americans are looking for is a separation apparently extreme bull riding on saturday. between insured deposits and the heart from the american economy, that there is some some form of investment. hiring and a lot of dynamism. we've had rules in place for 70 the mayor told us that is hiring years. we've repealed many of those here. toyota has a second shift on rules in the last ten years. that tundra that they recalled and we need to look carefully is beginning in march. at -- at that again. here are to the green chutes and as it relates to us, our bank is completely separate from our croakuses from texas. time for the "closing bell." investment bank. there's no way that i can do any a major blizzard paralyzing of the things that everyone the northeast. seems to be talking about the volcker rule. but heavy snow not putting a >> do you see it as an damp or wall street, as stocks opportunity? >> absolutely. >> all right. erase the losses as we enter the >> it's absolutely, because i think that as the markets homestretch of trading. restructure, they're going to live from the new york stock come closer to what we do day to exchange, this is the final and day versus what was done in the most important hour of the last five years. >> now a lot people would have trading day. woken up this morning and would and hi, everybody. have awoke and that a judge to there's a live picture of times square, new york city, where the reclaim five wisconsin school snow is still coming down in new districts that allege that your
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york and there's a live picture bank actually misled people inside of the new york stock into -- or those bank school exchange we're entering the final stretch of trading with the day on wall street. districts into investing $200 the blizzard just outside of us, million into risky investments part of the reason that we're using borrowed money. seeing below-average volume on wall street. does that keep you awake at hi, everybody. i'm maria bartiromo. >> good afternoon, i'm simon night? i mean as a leader, how are you hobbs as we say stocks pearing dealing with that sort of revelation and that sort of earlier losses in the session accusation? thanks to a lift in the >> well, you know, first of all, financial sector. we acted as placement agent. the strength of the dollar is putting a downward momentum we did not structure or make the coming into the final 60 minutes. where we are on the averagings, dow jones industrial was down 95 product. we advised on it. points. no big followthrough on it was a aa rated security at yesterday's 150-point gauge. the time and i think that it we'll hear later about the underscores the problem that financials and whether or not it's a technical move p on the happened in structure finance. at the time, everyone thought nasdaq, there you've seen, that these things were safe and research in motion and dell, the that they were good. stock not doing so well. and we certainly thought so. on the s&p, just bear in mind and it turned out not to be so. that there, the 200-day moving average is at 1020. so, you know, to sit back and some the chattered today if we and you know something that was get down to that 1020 and then rated aa and is now not, it perhaps you should buy for a strong bounce, say some at least, moving onwards into the . probably speaks to the time. individuals, a lot of people are saying what happened. >> yes, simon, a real mixed we didn't manufacture that product.
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market today. financials are higher actually i'm confident that we did and energy is lower. everything absolutely above get to our team covering markets right now, here at the nyse and board. >> mr. kruszewski, thank you the nymex and the floor of the very joining us and semi group in chicago. congratulations on the results. bertha coombs kicks off. >> thank you. all right we have a market that's down about 16 points on the dow. about 25 minutes before the >> reporter: snow and uncertainty in europe that have closing time and very much mixed situation. put a tamper on trading today financials are holding up very and kept volumes fairly low. well actually. coming up will yesterday's the market has been watching big-day rally just a one-day every headline that comes out of wonder? what the eu is doing and how we'll find fout we're still on track to see gains moving they are moving, trying to find forward when "closing bell" a resolution, propping up the returns after the break. grecian debt crisis and something that we'll be watching over the next few days well into next week. bernanke's testimony was released this morning. on outlining an exit plan, the market pretty much took a slide. a lot of things that told about -- heard about. the 10-year auction did not go too well. rick santelli will have more on that, partly because of the low volume, because of the storm. as the storm's intensified here in the northeast i know that traders are concerned about getting home and we've seen volumes get lower.
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financials have been the standout all day and really moved us into positive territory midday. jpmorgan, bank of america very strong. and strong that perhaps metlife set to buy its alcoa unit. energy and materials have gone back and forth as the dollar has gone back and forth. dollar lost ground midday. we saw them gained and now they're losing again as the dollar is stronger got and also got disappointing outlooks from lothan mentel. the super markets, maybe one of the benefactors to watch as far as the storms. their stocks today are doing pretty well. a friend of mine sent me picture it is from washington area super market chains there, calling them, so be it, safe way. this is the chicken refrigerator and that's the produce aisles. look like they just have a few left there the. folks continue to stock up every time these storms move in. let's head on over now to the
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nasdaq and mike huckman. >> reporter: thanks, bertha and we're almost flat here at the nasdaq and at this level the nasdaq is struggling to remain just barely. the only one of the three major indices to actually be up so far this month, and to remain on pace at this early juncture of february 10th, to have its first winning february in years. and helping the nasdaq, crawling out of the relatively small hole today, are shares of google. well off the lows of the day as you can see, after the news broke on google's blog, of all places, that it is, at least, on a trial basis going to move into ultrahigh-speed broadband. shares of its main competitor, top competitors in china, baidu, hitting a new high today. up 11% right now on better than expected earnings. the same can be said for mi millicon. investors clearly have no reservations about that's the online restaurant reservation's site. again, better than expected
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earnings, and then on top of that, a price target raised by citi. the stock is up 23%. ahead of its earnings after the closing bell. we've got activision up 2% right now. moving onto upgrades, both dell and adobe systems upgraded to buy today. respectively, from bank of america and from jeffrey's and finally in biotech, sell gene up welcome back. 25 minutes before the closing bell sounds on wall street, and 2.5% because there are new a very snowy day here in new guidelines for broader use of york city pmt markets are mixed. we have a lot of strength in its blood cancer drug. financial services actually. and finally issa's but the energy stocks are lower pharmaceuticals down 18% trading are as a number of economically at a new low today, a multiyear sensitive names that were low, because of side effect and actually higher yesterday. safety concerns over a the stocks, like, coca-cola, late-stage experimental cholesterol drug study. chevron, gap all down on the session. dow jones industrials down 30 points as you can see here. off of the worst level was session, but off of the best as >> reporter: oil prices turned well. around today, mike, and closed nasdaq also weaker by about five points. above $74 a barrel. mixed situation within tech, ya we're getting more headlines hughes, google, amazon, ebay, about iran's plans to increase apple all lower. their uranium inrichment. they plan to do so and go ahead simon, over to you. >> time for the "fast money's" with their plan within days. keep in mind, we other than also final call. it was a good day today as maria getting report today, from the said with some of those
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energy information administration, calling for oil financial, so what should you be taking? prices to strengthen this steve grasso joins me director spring, to average $81 a barrel of institutional shares. in the second half of the year. the weekly report, though, that we get on oil inventories quite good news on some those financials? >> absolutely but you have to according to the energy look at bigger picture. department, will be delayed until friday at 11:00 a.m. where they have come from since meanwhile, there's still a lot that silly bank tax was of uncertainty in the currency announced? they're all basically off 10%, markets, and that's what a lot 15%. of the commodity's traders are and with goldman sachs at where following as we wait for this that was, that was at $175, it's european summit tomorrow. and also see whether or not we at 154. so a lot of ground to make up. could see a pullback here in the even if they had a good day and dollar forecast eu actually gets mr. bernanke spoke, added some a plan here to bailout greece. color to this situation, the problem is there's still a lot of green left. still a lot of unknowns to be paying very close to that. meanwhile, natural gas prices, yes, we have this winter storm dabbling there. >> obviously someone's buying it that's blanketing the east coast but natural gas prices were only in this environment of. >> course. all good for a trade. up marginally. look it, they've all jumped off why? well, there's plenty of natural of their 200-day moving gas in storage. averages. in fact be, oops 7% higher than that's what traders look at. it was for the five-year maybe they don't have off. average. and finally a quick look at pieces to the puzzles but what they can look atar the metals. looking at lower price for gold technicals and the tech cals are and for silver. your friend in a lot of these copper only up marginally, stocks. again, rick, a lot of tension's all jumped from their 200-day moving averages. going to be paid to the foreign >> but would you re-enter?
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exchange markets tomorrow for the impact that they'll have on >> i don't think that i'd the commodity market. re-enter into the financials. i want to see a little more over to you. >> reporter: hey, foreign exchange markets are moving, and clarity on the bank regulation's side because i really need to know how deep this is going to they're somewhat exciting. maybe not very for exciting hurt in the final plan. >> which way does the market go reasons. but if you look at the beginning here today, the ten-year note from here. >> well, right now in a very auction didn't go well. precarious spot, 1067. call it two forces at work. we're seven points away from weather forces, of course, as support. and we're a couple of points many customers and participants away from resistance, so we're want to get home early, and what basically in no-man's-land at is going on in europe, you this point so i wouldn't be talked about. yields are at their highest buying if. >> the 200 day moving average level of the day. and look to see a little behind the s&p stands at 1020 or thereabouts. if, or as we approach that, is that -- i see some comment that additional trading, say traders. that's -- ahh, that's a real second chart, eurocurrency, you aggressive point to get in and could see it's down on the day. we'll ride through a couple of but it definitely is not at its months. nonsense? >> i think that it's probably worst level of the day as nonsense because if we get to everybody tries to handicap. that level we're probably going what kind of bailout or lower. i think that we'll test the 1044 guaranteeies are around the which is the recent low, corner for the likes of greece and maybe other countries? initially. >> if we broke 1020, it's a and the last chart, now this is a fun one, isn't it? very, very bad signal for the market, isn't it? this is a 10-year greek bond. >> yeah. i wouldn't -- nothing good about and it took them nine whole that at that point. i think then we go straight sessions to go from over 7% back below a thousand on the s&p. down to where they are now just i do think that we're going to
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above 6%. get to a thousand in the s&p. in a round-about way of some say 6% never looked so answering your question i think that this market goes lower. good. hey idon't think that ride's >> okay, thanks for cheering me over on these. the one final story that's out, up, steve. you know there is big talk today better change my 401(k). >> you still have that going for you. as you said before, there are that the fed's going to stop buying several things whether plenty of ways to trade the it's currencies or mortgages. market and make money while it on christmas eve when they took is zigzagginging across the the shackles off of freddie and board. >> like? >> well, could you always -- >> general -- fannie. the news today, guess what, are going to step up purchases of >> general things that you could trade but always long tech. i think that energy is a good delinquent blowns. long-term play especially when we knew that one was coming. maria, back to you. we we see iran raising its head >> yes we did. rick santelli, thanks so much. again. i think that energy plays could stocks are making up modest be a point to make money. losses today thanks to strength >> even in an environment that we're not sure what the dollar might be? >> even in an environment where you are not sure with the dollar in the financial sector. on much to all of that we've got and you have to be close to your the fed story of course, computers. this is a trading man's market. bernanke wind things down. let's wind things up here and not an investor's market unless how you should be invested in your time horizon is looking this market as we look toward the rest the year. five years, ten years down because we all know how the last joining us is peter, equity ten years played out so you have strategist with miller tayback. to be a lot nimble than you were. >> including dividends on the gentlemen, nice to have you on s&p. >> right and that's a great point. the program and welcome you i don't want to be stuck in etfs back. eric, kick this off with you. ben bernanke, detailing how the because etfs are basically dead central bank will begin to wind money but if you had invested in apple you'd be up 700%. things down.
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>> do you hear many people suggesting, of course, interest around here that are positive at rates are going to go higher at the moment? some point, but first, debt is because i just, anecdotally, i removing cash from the financial system before it turns to moving keep hearing negative stuff from on rates. anything new from your so many people. >> right. i think that there were guys standpoint? do you change your investment that were positive, but i think strategy based on what we heard that when government got to -- from the fed today. >> no, but the things -- nothing you know, too overreaching in from what we heard today, but the markets i think that's when just the indication that rates we sold off. >> okay. are going up sooner than most of >> remember, we had government, and china and we had sovereign us are expecting is a negative debt. so now even if we handle in my mind. sovereign debt still a lot taking liquidity out of the unknowns. system which has been fuelling >> i see. thank you very much for that, this upturn and the economy. steve grasso and on tonight's that worries me. >> i read that he was -- "fast money" darren kaminski actually should lay out the joins us to explain why strategy way in advance so that bernanke's action may actually be good for the market and plus nobody's surprised further down the best ways to plate global the line. >> well, he certainly has to do credit crisis using etfs. that at some level but he doesn't have to tell us what he guest host bob pisani and the is going to do in 2011. traders are live at 5:00. all right, simon, you know, what he's going to do in second look, steve grasso just said that the s&p going to 1,000, half of 2010, most are looking well right now last check 1,066 for a more robust recovery. is where the s&p 500 is right now. he says it's going to 100. interest rates in the latter half of the 2010, the end of the year. i was surprised. 20 minutes before the closing >> peter, what about you? bell sounds on wall street. the market is lower here. do you do anything different in the dow jones industrial
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terms of strategy based on what we heard from the fed and what's extending losses of another your thought, as far as 2010 in decline of 24 points on the dow. owning stock? >> well, overall, i don't think that really bernanke said anything new. he's got a grand exit strategy, but it all still comes down to timing and he evin after the end of his peach, when it may be right now 1.2 million people are on sprint mobile broadband. time do this, so he doesn't even know. 31 are streaming a sales conference from the road. i think that the deeper you dig a hole in policy, the harder it 154 are tracking shipments on a train. is to climb yourself out. so when the fed is going to 33 are iming on a ferry. start this process, it is going and 1300 are secretly checking email on vacation. to create a headwind for 2010. that's happening now. as it was a tailwind for 2009 america's most dependable 3g network. and it's not just the fed, it's bringing you the first and only wireless 4g network. china, it's australia, it's other countries who are taking right now get a free 3g/4g device for your laptop. away the extraordinary monetary sprint. the now network. deaf, hard-of-hearing and people with speech disabilities access and fiscal policy that creates trouble in my opinion, where at least they headwind potential road block for the market in 2010. >> eric, i see you're spooked, you say, by the market that we've had recently. >> a little bit, most definitely. that was big change for me. the bernanke comment were a
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change but not today. sort of the indication of what he was going do but what spookd me is last week's more panicky type of selling. we all knew that greece was having problems and other countries in the eu we knew that the eu would deal with it at some level. it was more panicky selling. is that everything went all down at once. commodity went down. stocks went down. >> yeah.>> currencies went down. we got out of risk and went back into safehaven. that worries me because it was a change in tactic for investors. >> it was an out and out and sell everything. >> it was. >> even the classes that you thought would be protective measures -- yeah, exactly. peter, that's my question to you, do you want to start taking some chips off of the table on the china trade? in other words, everything china needs, iron, orr, steel, gold, food, water, et cetera, have we seen the best that the we've seen there or do you think that that move continues higher. >> middle of january you've definitely seen the best but once you saw china to make its moves sort of cooled things down
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and then this trade was going to take a rest. throughout the rest of this year, look out to 2011, that's where you want your money to be. you want your money where it is going to be best treated. that is in asia, that's in china, that's in india, that is in commodities. that's in nondollar assets. and on pullbacks, 10%, 15%, 20% saw in variety asset classes you want to take advantage of that, but in my opinion that the u.s. centric-based opinion companies will continue to have this overhang of fed policy unwinding, tax hikes coming in 2011 and a built-in roadblock to any recovery here. >> all right, leave it there. gentlemen, great conversation purchase appreciate your time tonight. eric, peter, good to see you, thank you. a new report today indicating that group got off it a decent start in 2010. cnbc's jane wells on the details on retail. details, retail, jane? >> reporter: ha, hey, maria, we've got some interesting data about january burks first let's talk about february.
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this snowstorm back east is really doing a number of retailers. weather transit international says 70% of the country will be blanketed in snow this weekend. that could cut projected sales growth for the month by more than hamp. now look at what nair telling us, target tells us it closed some stores on saturday and canceled deliveries and also 60 minutes to trade in a costco telling us it closed 31 very wintry new york, and there stores over the weekend, lost you can see the widely heldings. $20 million in sales. the financials are coming off a 29 stores are closed today. bit in the likes like jpmorgan quote, you can never make it all and bank of america, which have boosted earlier in this session as we fail to hold at the flat line. up. census numbers on friday but new now down 27 points on the dow jones industrial average. numbers coming in today showing on the technology, seeing there, that things while improving may we're actually at relatively had been a little mediocre in january after a pretty good mixed today. holiday shopping season, intel with a good performance mastercard spending pulse says and maria said earlier the likes sales improvement in january, while up, slowed partly due to of research in motion and dell had a good session. tempered comparisons. >> simon, investors look for on an unadjusted basis which afon edge in their portfolio, my they prefer, without auto, sales next guest says, think global. rose 3.6% from a year ago, but among his remedy for returns be, global technology companies. down 4.8% growth in december. these john kalamos, at kalamos but if you take out spending on investments. john's firm has $32 billion in gasoline, it turns out growth really didn't much happen at assets under management with all six of his funds outperforming all. >> they've had a profound impact the s&p 500 over the last
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decade. john, it's nice to have you on the program. welcome. >> well, thank you, maria. actually. gasoline spending up 30% year to >> see you've dubbed the last decade, the lost decade. year over the last couple of and yet you've been able to months and blown out our total outperform the market in your retail sales number so when you strip out gasoline still talking funds. tell now what you attribute the about maybe .3% growth for outperformance to and where you want to be exposed to in the january and only about 2% growth next five years. in december. >> well, i think, like every >> reporter: so while spending was up, a lot of it went to markets, it's not just the last gasoline, and looking forward, ten years, it's the -- you know deloitte's monthly measurement i've been doing this almost 40 of consumer cash flow used to years now, it's every year. predict future spending that you're looking for slipped for the second month in opportunities. you're not just buying an index. a row in january, as real wages ended up flat in the face of you're not just riding the wave. these higher energy prices, and what you're doing is looking for speaking of the weather, guys, out here this weekend, it will where there's opportunities in get to 70 degrees. just saying. the market and taking advantage >> 70 degrees! >> that's swanky. of those opportunities. we're in a very volatile period, >> she's trying to make us feel bad. obviously. >> yeah, she is. >> all right, jane, see you we've been involved into periods later. go get that bikini going. before. i think that if you sit on the 45 minutes before the closing bell sounds on wall street. we've got the market right now sidelines you end up missing a lot of those opportunities. >> let's talk about volume on the low side in this opportunities here. weather, down three points on your overweight technology and the dow jones industrials. up next the managing you're overweight energy. director of moody's investment do you think that we're going to see a flat market, but you want group shows us why the debt tok exposed to those areas and
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you like global. issues in europe may not be as severe as you might think. where, specifically, do you like and then later, a global? which areas of the world do you conversation with noted market want to be exposed to first of watcher, john kalamos, find out all? and then let's talk about sectors. >> yeah, there's obviously a lot why he thinks that we'veded for a decade of slow growth. more country risk. decade finding opportunities, nonetheless in that environment. that's one of the things that's been going on in the last few weeks. so we need to be careful there. and then after the bell, google make a move to tap into but it's not just going global. the world of high-speed it's relate looking at global broadband networking. looking at theities implications companies that get a lot of to help the turbo charge, their their revenues from outside the internet connections, that's at united states and other parts of 4:00 p.m. eastern. the world. but first the most active stocks on the new york stock it's growth stocks. exchange today. one of the opportunities that we're seeing are the valuations are still very attractive there and the fumes are very attractive. unlike financials, where there might be a lot of speculation, a lot of trading activity, but the fundamentals are very hard to determine at this point. we think the growth area, growth stocks, the fundamentals are very favorable here and they're priced very right so we've been
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focused on that area. >> so, let me just make sure i understand here because you're looking at specific stock names within technology that are u.s.-based but are multinational in nature, deriving much of their revenue and profitability from outside the u.s. >> in our u.s. portfolios, that is correct. in our global portfolios, we're also looking at companies that are headquarters in europe and japan and other parts of the world. >> okay. so in terms of technology, what areas of tech do you like? can you break it down in terms of where the growth is? i mean, mobility a major trend. what are your top holdings in tech? >> well, you know, we're looking at some the consumer product areas in technology. obviously, you know we've been holding apple for many, many years. >> but would you commit new capital top apple today? it's already had quite a run. >> well, you know, maria, we've not talking about day traders.
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i know that you have a lot of day traders your program. >> no, we want to look long term. absolutely you're a long-term thinker earn that's why we love having you on the program, john, but i'm wondering why $195 is a good entry level. not necessarily to flip it and get out of it immediately but if i put money into this at $195 and want to hold it for ten years is that a smart idea? >> well, we're not saying holding it for ten years. we're saying, hold it until the fundamentals tell us something different. this idea that there's a time frame to hold is not correct. we're saying right now the fundamentals, the cash flow analysis that we do make it very attractive. we got out of all of the technology stocks in late 1999. you know, when they were the favorites. >> what was it that you saw, john? that caused you -- i mean you really beat the market massively over the years. getting out of tech in 1999 which of course wasn't at its
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peek, it was in 2000-2001 where things started plummeting pun got out way before then. so what did you see that you didn't like? >> well, the valuation's just got too stretched at that point. it was not that they were not great companies back then. they were no longer great prices. the prices of stocks back then that we saw, it was very hard to justify. they would need a perfect environment going on, literally, for years and years to justify the current stock prices. and after time we got out, we were highly criticized getting okay time for this week's "tick by tick." problem, obviously, persist in out of all of these great companies, but you know we're europeux over uncertainty over the sovereign debt there, and trying to buy great companies at great prices. our next guest says that the not just be in a great company situation has reached a trigger point. forever. >> yeah, well this is a very he's snowed in at home but joins important point that you're us on the phone. making, john. i mean, let's talk about some jordan kotick has our technical the valuations that we're seeing strategy of barclays capital. in this market right now. good afternoon, to you. for example, one of my favorite trades, one of my favorite so it's just one chart today, investments is this look at jordan. >> caller: yeah, no problem, resource. simon. i thack you're right on the resource rich nations which is money. one of the reasonings that we're given all of the speculations coming out of europe, concerning
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seeing so much money moving into africa, brazil. greece, et cetera, that's the commodity's plays. important to look at the do you think that the valuations are getting stretched there or front-end the yield. if we look at european two-year do you still want to own those yield you can see this market's kinds of companies? >> yeah, you know, maria, you been arranged for 12 month, 15 make a good point there. months. prop end of the ranges that 150 we are a bit concerned about the to 160 level. valuations being stretched and the bottom end of the range there. but we're still in them and is just about 1%, which is we're still watching them very pretty much exactly where we are right now. closely. but you know, the commodity play >> so the advice is? >> caller: well, clearly if and the energy play is also a there is going to be any confidence in the market in anything coming out of europe is hedge against the dollar being the question if the bond market devalued here as well. would gain the kind of top-side so we're -- we're looking at in yield. so what we have to watch is that very carefully. bonds have been aggressively but i think you bring up a very good point that we have been bent sings they peaked at 160 discussing as well, is whether and the move down to 1%. some of these areas are being stretched. >> john, you're avoiding you need to see those lows hold. financials and consumers names. what's the story there? if the market starts to get why do you want to avoid those below 195 to 100 basis points areas? is there something specific that you are going to break the range, get even more aggressive you expect these stocks are going to go down over the bid in the bond market and that would be a vote of nonconfidence coming -- whatever time frame that you're looking at? >> you know, obviously financials have bounced back from the market's. this is very important. >> do you see europe as the very, very well in here. but it's more of a speculative leading indicator here? trading play.
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not just a correlation whether it's not based on a lot of, you we heard from eric ross, he's a know, the underlying disorderly, slightly panicked fundamentals. so we're a little bit nervous market. you are don't think that you're just picking up on one end of about that. the correlation? you know in the financial areas >> caller: no, simon, because we like asset managers rather remember temperatures the euro occurrence te happened to out in than the large banks because the november, so when the euro started to fall and dollar cut fundamentals still are not its bid but at that time the there. stock market's were still you know, we wrote in our piece, relatively stabile. only started to correct about a is it a -- bounce or are the couple of weeks later. so given the sensitivity in the fundamentals really driving this? fx market started by the euro, and i think it's just more a it tells us that the market hope, a speculation that things problems had been coming, or will get better. motivated by what's going on we'd rather be investing in across the pond. >> jordan, thank you very much. areas where we're much more good luck with the digging. confident on the underlying >> caller: thank you very much. >> see you next week. >> he gets to call in from home, fundamentals. and when we see cheap growth huh? >> yeah, i thought about that today. >> moving on, from sovereign stocks out there, you know, it's risk to sovereign reality my, all relative. i'd rather own that than a next guest says investors need to differentiate the risks between spain, portugal and speculation that financials work in here. >> right. greece. john, it is so nice to have you he's pierre, he's managing on the program. >> thank you. director of moody's sovereign >> appreciate your insights today. risk group. thank you. >> thank you, maria. >> we'll see you soon, john he joins us now in a "first on cnbc interview." sir, good to have you on the calamos joining us. program. welcome. >> thank you. he doesn't seem too worried >> so moody's out, talking about about europe. these concerns growing over the given that he's been investing.
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debt issues with spain, portugal, italy and of course greece. >> glass half full we were down in response to that mead's says 95 points earlier in the we need to differentiate month session. >> yes, glass half full. situations. you can differentiate for us. our matt nesto is looking at big >> well, we can differentiate. companies and meanwhile they are we have different readings for tightening their budgets for 2010 for their current budget. 'o spain, portugal and greece and we think putting all of those countries together is not a sound way to look at the risk. and subtitle to our report is contagion or confusion. and we think that the confusion. >> so tell me what the risk is first in greece. >> well, greece has a clearly -- a -- changeed. you restore credibility and now implement the plan but we think at the same time that the concerns about an imminent default is probably overstated and liquidity drawing out. so there is a painful process of adjustment but you need to let
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the government actually start implementing before rejudging. >> so how worried are you then about the risk of the default in greece, for example. >> well, we're not very worried that it would be an imminent default on greece. we have an a2 readings. our issue more long-term issue of ardjustments in a context of higher interest rate, an anemic coming growth and the difficulty to restore competitiveness. >> and you believe, based on your research that spain is actually in a much better place than portugal and greece is that right? >> oh, yeah, absolutely. absolutely. >> why. >> well, because spain first studied from a pretty stabile position at the beginning of the crisis. its debt metrics were pretty sound. and second thing is that there are a lot of headwinds. of course a number of agents who do have deleverage and it will cost. but at the same time as we are seeing the plan, the program has been announced by authorities. even if it implements parts
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actually to keep the debt -- which is an important part to judge -- rating. >> pierre, let's talk about the financing options. of course, we've got the eu leaders meeting in brussels. what will be discussed at that meeting? >> well, i suppose the first going to discuss is first to let first greece implement the plan and i think it's really what going to say. the second thing is that if do implement the plan indeed and stay committed on their ambitious plan and a problem in march, april, may, well, then they have some help but a number of sources. as you know the ecb in fact takes the debt, the greek government. and you may have some bilateral support. but it's not the central scenario, though. i think most likely that the european governments are going
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to say an ambitious plan, we have to start implementing it welcome back. and of course you will benefit belt tightening on the household level has been the norm lately from that if you do that. >> is there a risk, though, that but what about on the corporate level? germany has to get involved and matt nesto has new straps of how act as somewhat of a backstop big businesses are spend their money. >> reporter: yeah a snowy day for greece and that does create ripple effects throughout the e-mail from the s&p index's euro zone. >> no, i think germany and strategist, index analyst and take a look at where we are, france, the large countries, are about 3/4 of the way through very well difficulties and they earnings season. things generally have been all of course want to have a -- coming in better than expected on that front, but as far as the market performance, you could in the euro, so they will see, it certainly has not been a great performer, down about 7% provide a backstop. i then is the government during that period of time. so when you look at, as howard implement. if does implement the plan but does, at some of these 10k that's not central scenario. filing, 10q filings and find out i think at this stage the greek government going to implement how these companies are spending the plan, at least part of the plan. >> so you would recommend that their money it's actually very telling in terms of what they investors buy into greece right think about the future and how now. >> well, we don't make any that's going to apply to the recommendation says of sort. recovery. so three key areas jump out. in terms of buybacks, he points >> pierre, good to have you on out that the absolute dollar the program. we so appreciate you're time purchase levels are up about 50%. today. >> thank you. we're almost even to where we >> pierre kailleaux from were in the fourth quarter of
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'08, but still 66% below the levels that we were at the high moody's. but on the volume, we traded watermark in 2007. 718 million shares today. we move onto dividends. that's about average, isn't it, a lot of dividend news lately. maria? that's not unreasonable low, not in fact, overwhelmingly positive. panic selling day like recently look at that statistic. but not bad volume overall as we 47 to 2. that's when you throw in the move higher. towel, folks, if you are getting >> it's okay. i mean, volume was so much beaten that badly. stronger a few years ago. and then lastly, he took a look now the average, you are right, is under a billion shares at at cash, in terms of it's place this time of the day. we'll see about that. on the balance sheet and there is more cash and less short-term up next how smaller financial services companies are investments. it's actual up 9% from the third cashing in right now as bigger players retrench in the industry p we'll talk to the head of quarter. so just taking a look at a couple of dividend declarers and stifle nicole aus about that. hikers here today, even this, is a mixed reaction in the marketplace here today. wind ham with that big tripling and strong earnings but eog, for example, they ratzed their dividend very strongly but their earnings weren't there and the stock got pounded. maria, back to you. >> all right, matt, thanks so much. we've got the short break and then the closing countdown after this break. >> after that, is apple the new microsoft? find out apple is indeed focusing on strategy rather than products when it comes to raising the stakes against its rivals.
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there's federal hall down on wall street and theres a look at the white house in washington. washington, d.c., sets an all-time record for total season snowfall. 54.9 inches of snow have fallen in washington, an all-time record, versus the last time that we had that kind of snow which was back in 1988, at 54.4 inches of snowfall. snow is coming down. let's take a look at some of the action on wall street, meanwhile inside, where we had the widely helds trading mostly higher in financial services. certainly. and a look at some the dow components and what is moving this market today, as you can
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see, oil's are lower -- in fact the drugs and the oils are the laggers today and the financial services are actually in the lead. making the market, have a lot of moves but not too far of where it began on the day, flat on the session. >> i will speak to steve grasso later in the financials and in which they bounced on their 200-day moving average, so he says. the parent of stifel nicolaus today reported a 54% surge in fourth quarter profits to $24.7 million for the year. the company earns nearly $76 million. joining us now in a "cnbc exclusive" with more color on their quarter is stifel nicolaus, financial chairman and ceo, mr. ronald kruszewski. thank you very much for joining us. you've broken the revenue, a good reaction on the stock today. what's driving it at the moment? is it those 56 private client offices that you bought from ubs? >> well, those certainly help e simon. i think that for us, we're the
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beneficiary of the turmoil on wall street. we just -- this marked our 14th
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